Inspection of co-operative societies.

(1) The Registrar may, on the request made by a creditor or, not less than one thirds of the members of the committee, or not less than one fifths of the total number of members, of a co-operative society, undertake inspection of a co-operative society or class of co-operative societies by general or special order in writing and authorise any person by order in writing in this behalf, to make an inspection into the constitution, working and financial condition of a co-operative society.

Provided that where a serious complaint is made by a member or a pubic servant in writing about the affairs of a co-operative society or committee or office bearers, to the Registrar or to any person authorized by him in this regard not below the rank of Joint Registrar and if the Registrar is prima-facie satisfied, after recording his views in writing and affording an opportunity to the person against whom complaint has been made, he may order an inspection in respect of only issue or issues as the case may be, raised in the complaint and the inspection shall be conducted by a person not below the rank of an Assistant Registrar. (Added vide Notification No. F.14(31)/LA-2004/16 dated 17/01/2005)

(2) For the purpose of inspection under sub-section (1), the Registrar or a person authorised by him under that sub-section shall at all times have access to all books, accounts, papers, vouchers, securities, stock and other property of that society and may, in the event of serious irregularities discovered during inspection, take into custody and shall have power to verify the cash balance of the society and subject to general or special order of the Registrar, call a meeting of the committee and also a general body meeting of the society, where general body meeting is, in his opinion, necessary.

(3) Every officer or member of a co-operative society shall furnish such information with regard to working of the society as the Registrar or the person making such inspection may require.

(4) A copy of the inspection under this section shall be communicated to the co-operative society within a period of ninety days from the date of completion of such inspection.